CCTV economy half Hour: Wage controversy refracts Chinese model

Raise the minimum wage across the country.　　(Photo source: CCTV economy half hour) data map the salary increase "erosion" made in China? --Salary increase controversy refracts the predicament of Chinese model Editor: Solemn choreographer: Dinggoppo camera: 刘勋 from July 1 onwards, Beijing, Henan, Shaanxi, Anhui, Hainan and other 10 provinces and cities to raise the minimum wage standards, of which the largest increase in the Hainan Province, a class of regional minimum wage increase of 31.7%, ranked first in the country　　From this year onwards, the country has 27 provinces and cities have raised the minimum wage standards. At the beginning of this year, Jiangsu first announced that from February 1 onwards, the province of a type of regional minimum wage adjustment from 850 yuan to 960 yuan, up to 13%. After that, Zhejiang, Guangdong, Fujian, Shanghai and other regions have adjusted the minimum wage standards, the adjustment range is above 10%, some provinces even more than 20%.　　It is understood that this year, a total of 27 provinces and municipalities to raise or plan to raise the minimum wage standards. And the focus on "pay rises" seems to be starting from May. At the end of May this year, under the weight of the shadow of the employee's fall, Foxconn announced that, starting from June 1, basic-level operators ' basic salaries would rise from 950 to $1200. After a few days, Foxconn also reported that, from October onwards, some jobs in Shenzhen factory will be upgraded to 2000 yuan per month.　　Two increases were superimposed over 100%. Foxconn's big pay move, like a domino, calls for a pay rise in China's manufacturing-intensive "Pearl River Delta" region. At the same time, the rise in wages will cause at least 30% of companies to relocate overseas and so on, the sound is also spreading rapidly.　　For a time, the rising tide has become the focus of a wide range of social concerns. So will the surge in wages bring about a crisis for Chinese manufacturing?　　Does the rise in wages really mean the end of the era of Chinese manufacturing relying on the demographic dividend? From the local to the enterprise, the collective emergence of pay rise, the benefit of course is ordinary working-class. Like Beijing's minimum wage today from 800 yuan a month to 960 yuan a month, according to the Beijing Municipal human Resources and Social Security Bureau estimates that this will let the city about 100,000 low-income workers directly increase wages.　　But for companies, especially in export-processing firms that compete at a low price, the increase in wages means higher costs, and they cannot afford to pay such a raise.　　Our correspondent went to the Pearl River Delta to investigate some of the businesses there. Late June, the reporter came to the Heshan Gonghe Town in Guangdong Province, the true Neon group, which is the largest local Taiwanese lighting production enterprises, currently employs more than 8,500 people.　　The company's HR compensation manager, Tian Dan, told reporters that since May 1, their company has significantly raised the basic salary of the first general workers. Tian Dan (Real Neon Group Human Resources department salary manager): that jiangmen three types of areas of its adjustment of the upper limit, adjusted from 670 to 810.　　That's the way it floats. About 20% points, nearly 21%, such a situation. Tian Dan toldReporter, the salary is adjusted according to the local government minimum wage guidelines, and in fact, for some technical types of work, they may be more likely to adjust.　　Tian Dan: There are some technical possibilities, even higher, up to 850 or even 900 more.　　Tian Dan said that the company's front-line workers accounted for more than 80% of the basic wage increase of 20% for them such a near-million enterprises, the pressure is not small.　　Tian Dan: For example each person 100, you 10,000 person each month is 1 million of an expense, this will cause the enterprise to create the very big pressure.　　Compared with the concern of Tian Dan, the chairman of the real-neon Holdings Limited, Bang Hong's pressure on pay rises seemed quite calm.　　Bang Hong (Chairman of Real Neon Holdings Limited): We have been faced with these, because the economy is growing, society is changing, then some of the workers demand it will gradually increase with the economic growth.　　Bang Hong told reporters that their company is a research and development, production and sales of integrated holding company, has independent technology and brand, relative to those pure foundry enterprises, the ability to resist pressure is much stronger. Bang Hong: Most of our similar enterprises, are assembled, are assembled, plus because there is no own design, or their very simple design, there is no very deep design, so they are faced with a common, is that there is no profit.　　It is foreseeable that the wages are going to rise again in the face of big losses. This is an ordinary private toy manufacturing enterprise in Dongguan Liao Bu town, there are about 500 workers.　　Dongguan ha generation of Toy Industry Co., Ltd. chairman Shosenlin told reporters, starting May 1, in accordance with the Dongguan minimum wage requirements, their workers ' basic salary also has a sharp adjustment.　　Shosenlin (Dongguan ha Generation Toy Industry Co., Ltd. Chairman): Dongguan was 770, now transferred to 920, the increase is 19.5%, is 20%, so the proportion of Dongguan this increase in the country is still relatively high.　　Shosenlin that 20% of the salary range, for the general manufacturing enterprises, there is no small pressure, but different enterprises, the situation is still different. Shosenlin: In fact, before the pay raise, we like our manufacturing of other raw materials costs are also rising, in fact, our overall cost increases more than 20%, may be more, now that according to different industries, different types of enterprises, the nature of different enterprises, determine whether its costs are really like the wages of workers increased by 20%　　, its cost will also increase 20%, this also cannot across.　　Compared to other companies that rely entirely on foundry work, Shosenlin that the salary increase is not very stressful for him.　　Shosenlin: For me the words this kind of pressure still can withstand, still can withstand, you like in fact you such up, such as our Dongguan transferred to 920 pieces, in fact, this proportion of our business has already reached this standard. Shosenlin says the basic wage of their factory workers is now1500 yuan, in fact, has already broken the 920 yuan in Dongguan minimum wage standards, because in the case of shortage of labor, enterprises have to rely on raising wages to recruit workers.　　Shosenlin: For example, the same industry, you are now 1000, you may be more difficult to recruit, he in order to better recruit, he may be 1200, 1500, this industry competition, he saw his salary to 1500, it's wages will be adjusted 1600, 1700. This is located in Dongguan Houjie Town, a Hong Kong-owned leather enterprises, the company's managing director, Liu Daosong, told reporters that 9 years ago they moved the factory from France to Dongguan, where they saw the human cost advantage, although in recent years, especially recently, companies have been under pressure to raise wages, but for them,　　The pressure is still within reach.　　Liu Daosong (Managing director, Dongguan Lucky Anji Leather Co., Ltd.): Of course, some profits will be reduced in the short term, and we think it might be a process, and we'll be back in a few months. Liang, the owner of a labor company in Dongguan, has been here for more than 10 years.　　Liang told reporters that in the current employment is still in short supply, salary increases for many factories, it seems that the pressure is not so big.　　Liang (Labour company boss): Relatively speaking, the rise in wages for them, said no pressure is also a lie, but also a little bit of pressure, but say their overall idea, that is, value for money, or just said that the value of money, so that your workers can do, in fact, the factory does not matter, can give you, can give you. In the interview, our reporter learned that the increase in wages almost all enterprises will produce cost pressures, but different enterprises to withstand the degree of pressure is different.　　Some enterprises feel obvious, some enterprises think the impact is not big, why the enterprise pressure feel different, how do they deal with?　　Tian Dan, the pay manager of Real Neon Holdings Limited, told reporters that the current real neon workers pay about 15% of their total sales, under the pressure of salary increases, now mainly through the adjustment of working hours and other measures to hedge the upward pressure on human costs. Tian Dan (Human resources manager, real-ming group): Let's say we'll shorten his work time.　　is equivalent to the overtime this piece of wages, may be the base will rise, but in the overtime pay this piece will be a little downward. Tian Dan told reporters that they have been upgrading the degree of automation to minimize the amount of labor. The total number of their workers from the highest peak of 15,000 people to the current 10000 people.　　As a result, the cost of manpower is greatly reduced.　　Tian Dan: Before a person may open a machine or open two machines, and later through a number of technical improvements, we can open to four or even five machines, so that is to reduce the direct labor such a dependency.　　However, Tian Dan judged that wage increases would remain in the next two or three years, and that in the case of a shortage of workers, there would be more and more competition among companies. Tian Dan: Like Jiangmen orThe Republic (town) side of the enterprise, they have some difficult jobs, he will raise his salary, then we will actually adopt this follow strategy.　　If you do not, then in fact, the factory people, not only outside the people can not recruit, the factory people may also walk away, is this.　　Dongguan ha Generation Toys Co., Ltd. chairman Shosenlin told reporters that his factory labor costs probably accounted for 25% of the total cost, he said that in the same enterprises, not too high.　　Shosenlin (Chairman of Dongguan ha Generation Toy Industry Co., Ltd.): Some industries, some different enterprises, its human costs may be accounted for its product costs within 60%, this is more frightening.　　Reporter: According to you know what kind of enterprise accounted for 60%? Shosenlin: Many like OEM enterprises, it is just doing some processing, this (impact) is very large.　　The increase in wages has an obvious effect on its cost.　　Shosenlin told reporters that although the minimum wage in Dongguan for their enterprises, the pressure is relatively small, but, including the human cost of various factors, objectively indeed increased his production costs, he responded to the method is to improve the product factory prices.　　Shosenlin: The factory price increased, the pressure on the enterprise is not there.　　Reporter: But the market does not necessarily agree, you raise your factory price? Shosenlin: This return to see, you this enterprise is not own brand, this is very important.　　When you have your own brand, you can price the premium right, and if you are only doing some OEM (foundry), this is not right.　　Like Shosenlin, Dongguan Lucky Anji Leather Co., Ltd., managing director Liu Daosong Frankly, they are also through the increase of product factory prices to reduce labor cost pressure.　　Liu Daosong (Managing director, Dongguan Lucky Anji Leather Co., Ltd.): We'll tell him in advance that we may have our salary adjusted this year, the cost of labor is high, we may raise a few points on the price of this whole product, or I can tell him to raise three points, five points like this.　　In Liu Daosong view, because are long-term old customers, factory product price fine-tuning, and will not affect their product competitiveness. Liu Daosong: Our customer is a bit of advice, but he can not give up our cooperation, because he thinks our competitiveness is so strong, although the price is a little higher, he is after all to high into the high, the whole into the high, there is no way.　　or within the scope of tolerance, for example, we first for customers such as less adjustment part, slowly adapt to the transition, Liu Daosong that long-term reliance on low labor costs to maintain an enterprise's competitiveness, certainly can not be long-term, but this is almost all the Pearl River Delta Foundry Enterprises, the biggest problem facing. Liu Daosong: Enterprise competitiveness, human cost is one hand, if you are competitive, such as your technology, your strong innovation and technology, your brand premium ability, strong quality management, that supplier although you will be a few dollars, this they will accept, so I think as a corporateIndustry, not only to see the manpower adjustment, this is an inevitable thing. In the interview, each company told us that this year's pay rise is not unexpected. In fact, the increase in wages to them is not so much a cost pressure, but rather a transition pressure. Only in the technology and market transformation as soon as possible to adapt to the new industrial environment. In addition to the closed and changing, the PRD companies have a third way to go, that is, to move to the cheaper labor force in Vietnam to find new opportunities.　　Is this the right way to go? People go high, water to the lower flow, the original Pearl River Delta is relying on rich labor resources and low-cost human costs, attract various capital, forming a huge industrial group. Now, under the pressure of the rising tide cost, many processing manufacturing enterprises in the Pearl River Delta region have begun to search for lower labor costs, such as Vietnam and other neighboring places become their first choice.　　But many companies tell us that it is not easy to settle in overseas.　　In the interview, the reporter learned that in Guangdong province Heshan lighting production enterprise true Li Ming Group as early as 3 years ago, will part of the labor-intensive production line moved to Vietnam.　　Tian Dan (Real Neon Group Human Resources department salary manager): Part of the reason is because some labor-intensive industries here a pressure to recruit, we do a migration of the action, is such a situation.　　Tian Dan told reporters that their factory located in Vietnam's Taiping province, in the local two or three types of cities, now the factory has begun to take shape, there are currently nearly 2000 local workers.　　Tian Dan: They are basically six days of work, about 10-11 hours a day, and they can basically get their hands on the money is about 600 to 650.　　Journalist: RMB? Tian Dan: Yes, RMB. Basically, when we did the research, it was basically such a data.　　Then think about it in terms of the domestic, basically 1000 yuan ago, in fact, you can not find workers in the mainland now. Tian Dan to reporters: In the Pearl River Delta region, a production line of ordinary workers, one months to get the wages of at least 1300 to 1500 yuan, and in Vietnam, at present, the wages of workers can not be more than 600 to 650 yuan, so that the cost of manpower than the mainland to save nearly half,　　And in Vietnam, electricity, land and taxes are more favorable than those in the mainland. Tian Dan: In terms of electricity, like the domestic now, I know that the Republic of electricity prices basically, now is divided into that three stages, step electricity prices, but the average is almost to 7 cents 2 such a level. But in Vietnam, it may be about 4 cents a while, and 4 cents more.　　But it has a problem over there, saying that one of its power grids is not stable at the moment, there may be one, and sometimes there will be a power outage such a part. Tian Dan told reporters, although the electricity price is cheap, but because the factory often for power shortage shutdown, or some outweigh the gains, and let them unexpectedly is, after several years of operation, more and more problemsGradually highlighted. Tian Dan: We are now the main raw material, in fact, or in the Pearl River Delta side procurement, that by sea, or by way of land, sea transport we are to that coastal defense, and then by land we are generally, is to rent the kind of container trucks, and then take the land to that Guangxi dongxing over there, and then get the project.　　So the logistics of this piece is that the cost is increased.　　Not only the substantial increase in logistics costs, in the supporting environment and logistics channels, Vietnam and the mainland still have a huge gap, and, even Vietnam's most attractive human resources advantages, it is not so easy to imagine, in Vietnam to recruit even more difficult than the mainland. Tian Dan: To say that Vietnam is in fact recruiting is very good, the actual situation is not like this. Because it is a local infrastructure is not very complete, so he is difficult to have such as the Pearl River Delta, such as some of the more mature labor agencies, you actually many of the recruitment of the part you need to go down to their village, may be dozens of kilometers away from the factory or even hundreds of kilometers, go to the village　　They have a local horn, the village head with horn, and then the convenor past.　　Bang Hong, chairman of Real-Ming Holdings Limited, admits that the labour-intensive production line they moved to Vietnam, although it has been in operation for 3 years, is now facing many problems. Bang Hong, chairman of Real-Neon Holdings Limited (actually we still have some difficulties): it's that way, with 20几 year domestic also similar, power outages, the foundation of the road is very poor, so we have to close to the port of the place, there is no relationship with any internal, but it is undeniable that some of the costs around you are still very large　　, if you do not have a sizable scale, your costs may be more expensive than those produced domestically.　　Dongguan ha generation of Toy Industry Co., Ltd. chairman Shosenlin told reporters that his several peers, has also moved the factory to Vietnam and other land, but in the end are still disappointed. Shosenlin (Chairman of Dongguan ha Generation Toy Industry Co., Ltd.): First of all, the first Vietnamese toy industry skilled workers do not have, it must be retrained this is a process.　　Secondly, in fact, some labour laws in Vietnam are not the same as those in our country, and their workers may be far less enthusiastic about working hours, work or work, so they are not doing it for a year. Shosenlin that under the superposition of various factors, the salary increase is certainly the trend, but like the "Pearl River Delta" "Yangtze River Delta" in this way after nearly 30 years of development of the mature manufacturing cluster, whether the perfect degree of ancillary facilities, or logistics convenience degree in the world can not find a second.　　It is unrealistic to expect to reduce the pressure on wages in Vietnam, India and other fields just to move companies to lower labor costs.　　Shosenlin: A region that chooses to invest it is a comprehensive assessment that is not determined by just one item and may be very low in labor, but your other expenses may add up. Dongguan Zhangmutou hasLimited company Chairman Chen Yu told reporters that under the pressure of salary increases, more or less some enterprises will have the idea of relocation, but he also believes that the real implementation is not so easy to imagine. Chen Yu (Chairman of the Zhangmutou Cashmere Co., Ltd. of Dongguan): This is not to say so simple, you want to do a factory is equivalent to open a new plant, you like me from here to move to another place, is equal to open a new factory, then you now this link, is not so simple, especially when you say the environment is bad,　　It's not easy for you to go to the bank to raise money. Recently, the media reported that the Hong Kong Federation of Industries had conducted a survey of 80,000 Hong Kong-funded enterprises in the PRD, indicating that 37.3% of the companies were planning to relocate all or part of their production capacity to the PRD. So, is there really so many companies ready to move away from the Pearl River delta? Where does this data come from?　　Reporters interviewed the Hong Kong Federation of Industrial Workers.　　Reporter: 37.3% of the enterprises to move away from the Pearl River delta this data is not true, how did you investigate it out.　　Mr Leung (Federation of Hong Kong Industries): We do not have this data before, and we do not know why the reporter has such a report, so we are prepared to send a statement, on the Internet many other media forwarded the article, so we feel that there is a need to do some clarification.　　Shosenlin: I think he will move, and there is no need to wait until today to move.　　Reporter: Why?　　Shosenlin: Before the financial crisis, the shortage of migrant workers is not the first time this year, the cost of human resources are improving every year, it is not the first time this year to improve, it should be visible future artificial will continue to improve, if they have foreseen, should have to do some of the transfer of industry, do not need to wait until today.　　In response to the news that some Taiwanese companies are preparing to fetch Taiwan, Bang Hong, chairman of Dongguan really Li Ming Holdings Limited, believes this is unlikely. Bang Hong (Chairman of Dongguan really Li Ming Holdings Limited): What do you say about Taiwan?　　You are now higher wages in the country, Taiwan is still higher than it, the land is still much higher than domestic costs, but I am not good criticism, maybe they have their ideas. We see that under the pressure of a rising tide, there are indeed some manufacturing companies that have the idea of relocation. But how many companies are really prepared to move away from the PRD? We can't get an accurate answer at the moment.　　However, it can be affirmed that the impact of the rise in the Pearl River Delta manufacturing industry structure will gradually deepen. Liu Pinghan, director of the Economic Research Institute of the Guangdong Academy of Social Sciences, has recently been paying close attention to the issue of pay rises, and has also gone to some cities and enterprises in the Pearl River Delta for special investigations.　　He believes that the Pearl River Delta region under the pressure of the increase in the number of enterprises accounted for. Liu Pinghan (Director of the Institute of Economic Studies, Guangdong Academy of Social Sciences): More than half of the companies will be hit, only 10% or 20% of the companies, it may be in the course of the pay rise, it may be less impact. Then the entire PRD has 60% or even more companies that will beThis kind of interest space pressure after the wage increases.　　In Liu Pinghan's view, such a wide range of wage increases would greatly squeeze manufacturing's already low profit margins, and in the next two or three years the pressure will surely continue. Liu Pinghan: I feel that Foxconn, including some large enterprises, has reported Honda, Guang-Ben, we talk about this domino effect, after you rise, you want to the enterprise it will follow up.　　This is the chain of reaction, the enterprise between each other, there is a kind of comparison between employees, then what will bring problems, staff reshuffle, this with the management of enterprises and bring problems.　　Liu Pinghan that the increase in wages will bring pressure to the enterprises, and it is bound to promote the adjustment and upgrading of the manufacturing sector, which in the long run is beneficial to the overall competitiveness of the PRD. Liu Pinghan: Through this salary increase, the era of relying on low labor is gone, then it forces themselves to improve their management level, improve their own through other ways to reduce production costs, while upgrading, so that involves the quality of enterprise products,　　In the development of these core technology is able to be more competitive.　　But Liu Pinghan also thinks, raises salary it is a double-edged sword, whether for the enterprise, or for workers, if find a balance, will be peaceful; Liu Pinghan: It's not that the higher the salary, the better the personal development.　　I if the enterprise I have no profit, I will not do, you workers here to choose a job, so the contradiction between Labor and management is actually a double-edged sword, both sides can not push the other side, forcing is not good, this is a benefit of the balance point of the problem. So, how can we achieve this balance of interests? Liu Pinghan that both domestic and international experience has proved that a fair and authoritative trade union organization is the effective channel to balance labour conflicts and interests demands. Liu Pinghan told reporters that any time, any place, labor and labour contradictions will always exist.　　At present, the rising tide of the Pearl River Delta is the inevitable trend of social and economic development, and the contradiction between employers and employees, under a suitable consultation platform, is not to find a balance point.　　Liu Pinghan: We say that the cosmos to take small differences, so only employees, enterprises, government, you can play in this, we talk about building a relatively harmonious society, relatively harmonious labor relations, you are absolutely sure that there can be no contradiction, it is impossible, no country can do. Half-hour observation: In the program we only discuss the impact of the increase in the business level, and put it in the context of China's economy, the rise in pay raises a big proposition to change the way of economic development. Low-cost and low price is not the competitiveness of enterprises, low wages and low welfare is also not the competitiveness of China's economy. Residents ' income cannot keep pace with economic growth, not only violates the principle of fairness, but also a kind of distortion to economic development in a sense, which will lead to a series of economic and social problems in the long run. Whether to enlarge the consumption demand and improve the economy's own motive forceGoal, or out of the reform of income distribution pattern, to reduce the gap between rich and poor internal requirements, salary increases are irresistible trend. If the pay boom brings some pain to businesses and the economy, the most painful part is precisely the most irrational part of the economic structure that needs to be changed.